Problem - As Long as You Pay the Premium

  • Permanent (cash value) life insurance pays the beneficiary whenever the insured dies, as long as premiums have been paid. (p38)

2016 11 - FIO (Federal Insurance Office) - Report on Protection of Insurance Consumers and Access to Insurance - 58p

Life insurance is available in two basic types: term and permanent (which includes whole life, universal life, variable life, and variable universal life). 205  - ACLI 

  • After receiving these notices, John [Policyowner] contacted Glasgow [Agent] who had retired in 2000, to inquire why his policies would be terminating, even though he had timely paid the premiums on the policies for approximately 18 years.  (p4-5)

2010 - LC - Maloof v. John Hancock Life Ins. Co. -  60 So. 3d 263 - Alabama Supreme Court Opinion  ---  [BonkNote]  ---  39p  

  • Let's review the basic mechanics of Universal Life.
  • The policy does not lapse if a premium is not paid;
    • rather, it lapses if the fund balance becomes too small to pay the next month's cost of insurance. 

--  Ben H. Mitchell, [Bonk: a consulting actuary with Tillinghast in Atlanta - Years-?]

1981 - SOA - Universal Life (RSA81V7N412), Moderator: Samuel H. Turner, Society of Actuaries - 16p